Seasoned property developer, Mi Vida Homes has sealed a deal with a renowned institutional off-taker for the bulk acquisition of 200 apartments at its affordable housing project dubbed 237 Garden City.
While the transaction value remains undisclosed, the acquisition represents 30% of Mi Vida’s affordable housing portfolio in Garden City.
237 Garden City affordable housing project will be green-certified in line with Mi Vida’s guidelines and the institutional off-takers requirements using the IFC Edge tool.
Mi Vida Homes’ CEO, Samuel Kariuki highlighted the deal’s significance, stating: “This transaction underscores the investment potential for institutional-grade affordable housing in the Kenyan market and the opportunity to scale up such developments through structured offtake mechanisms that address market risk for developers.” He added that the deal demonstrates the opportunity to attract global capital to play a dual role in the demand and supply of affordable housing in Kenya which is grappling with an estimated housing shortage of two million units.
The new project will form part of the integrated mixed-use development established on a 47-acre parcel known as Garden City that includes the Garden City Mall, the Garden City Business Park, and a mix of residential offerings. Large mixed-use developments are increasingly popular among home buyers due to the added lifestyle amenities and added convenience they offer.
In addition to the 200 units taken up by the institutional off-taker, Mi Vida is also selling units at 237 Garden City in the open market to ordinary buyers. Mr. Kariuki mentioned that there has been a positive uptake for the Mi Vida product in the market and the first phase of the open market component of the 237 Garden City project is almost fully sold out, indicating a strong market appetite for quality properties at reasonable prices and reigniting the debate around buyer preference for completed property versus the option of buying land and developing.
Mi Vida Homes is backed by ACTIS (UK) and Shapoorji Pallonji of India and has four landmark projects, the first one, Mi Vida at Garden City was completed last year. The other three, namely Amaiya at Garden City, 237 Garden City, and KEZA in Riruta are at the groundbreaking stage. The Company’s current development pipeline is estimated at 3,000 homes spanning the affordable and middle-income housing segments.